A structural approach for analyzing fiscal equalization

Arbeitspapier

Many countries apply cost-equalization and/or fiscal capacity equalization formulas to enable sub-national governments to provide comparable service standards at comparable tax rates. This paper demonstrates how measures of expenditure needs and fiscal capacity can be derived from a structural model of local government spending and taxing behavior. The structural parameters are shown to provide the information required to implement equalization according to the principle of horizontal equity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 715

Classification and Topics

• Classification: Wirtschaft ; State and Local Taxation, Subsidies, and Revenue ; State and Local Budget and Expenditures
• Subject: Fiscal Equalization ; Expenditure Needs ; Fiscal Capacity ; Structural Modeling

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Langørgen, Audun
• Event: Veröffentlichung
• (who): Statistics Norway, Research Department
• (where): Oslo
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/192697
• Last update: 10.03.2025, 11:44 AM CET